A new report from the RAC reveals that the UK has the most expensive diesel in Europe, despite the fuel duty discount introduced in March 2022.
According to the latest figures, the average price of diesel in the UK is 155p per litre, 5p more than both Belgium and Ireland at 150p a litre.
The fuel duty discount was introduced in March 2022 to combat the rapid rise in fuel prices caused by Russia invading Ukraine in February 2022. The price of both petrol and diesel was cut from 57.95p to 52.95p. Despite this, the UK still has the highest rate of duty on diesel in Europe, followed by Italy where diesel costs an average of 148p per litre.
Interestingly, fuel duty and VAT doesn’t seem to directly affect the price of petrol and diesel at the pumps.
France’s duty rate is the equivalent of one penny lower than the UK but its average price for diesel is 9p less than the UK’s. France has the same VAT rate as the UK at 20% but Italy and Belgium have higher rates at 22% and 21% respectively, yet still charge less for diesel at the pumps.
In Ireland, where diesel is 5p cheaper than in the UK, duty is also less at 6p a litre, but VAT is 23%, 3% more than in the UK.
(prices in equivalent pence per litre)
Country | Diesel | Unleaded | Country | Diesel | Unleaded | ||
1 | United Kingdom | 155p | 149p | 16 | Hungary | 133p | 134p |
2 | Belgium | 150p | 150p | 17 | Poland | 133p | 133p |
3 | Ireland | 150p | 156p | 18 | Portugal | 133p | 150p |
4 | Italy | 148p | 161p | 19 | Sweden | 133p | 139p |
5 | Denmark | 146p | 175p | 20 | Estonia | 131p | 148p |
6 | Finland | 146p | 156p | 21 | Czech Republic | 130p | 136p |
7 | France | 146p | 161p | 22 | Slovakia | 129p | 139p |
8 | Netherlands | 146p | 173p | 23 | Slovenia | 129p | 133p |
9 | Germany | 142p | 159p | 24 | Spain | 128p | 142p |
10 | Greece | 140p | 165p | 25 | Luxembourg | 126p | 136p |
11 | Austria | 137p | 139p | 26 | Romania | 124p | 125p |
12 | Latvia | 137p | 146p | 27 | Lithuania | 123p | 130p |
13 | Cyprus | 134p | 133p | 28 | Bulgaria | 116p | 116p |
14 | Average | 134p | 144p | 29 | Malta | 103p | 115p |
15 | Croatia | 133p | 137p |
The RAC brought the high fuel prices to the attention of the Energy Secretary Claire Coutinho in mid-May, although it appears no action has yet been taken to lower the fuel prices.
RAC fuel spokesperson Simon Williams said: “We can see no good reason why retailers in Great Britain aren’t cutting their prices at the pumps.
“The price of diesel at the pump has barely fallen, even though the wholesale prices of petrol and diesel are identical at just 111p a litre. The average price of a litre of diesel should really be down to around the 145p level if retailers were charging fairer prices. The margin on petrol is also, in our view, unreasonably high at 13p.”
If you’re on the lookout for the cheapest fuel in your area, check out our blog on the RAC Fuel Finder app.